MINING CONCENTRATION IN AMERICA POSES A MAJOR THREAT TO BITCOIN

in gjdkhls •  2 years ago 

This is a huge miscalculation and something that, if successful, will have a huge negative impact on Bitcoin in the long run. The whole game theory around Bitcoin mining security is decentralization/distribution. It has been very clearly stated since day one that the majority (51%) or more of the Bitcoin hash rate can act maliciously in a way that severely degrades or completely breaks the security of the entire system. They can block orphans from other miners, even preventing them from participating in the system to earn revenue in Bitcoin.

They can exclude transactions from parties that do not wish to transact, and orphan blocks from any miners processing such transactions from the blockchain. They can selectively reject the lightning channel closing process properly, they can prevent peg in or peg out from the sidechain. They can completely break the system's resistance to censorship and undermine the security of not only the base layer but any secondary layers built on top of it to scale the system.

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